A Positive Externality or Spillover Benefit Occurs When

question 184

Multiple Choice

A positive externality or spillover benefit occurs when

• A) product differentiation increases the variety of products available to consumers.
• B) the benefits associated with a product exceed those accruing to people who consume it.
• C) a firm does not bear all of the costs of producing a good or service.
• D) firms earn positive economic profits.

---

Definitions:

Thinking Tasks

Activities or challenges that require intellectual effort and cognitive processing to solve problems or make decisions.

Performance

The act of carrying out a task or function, often evaluated in terms of effectiveness, efficiency, or skill.

Creative Insights

Sudden realizations or understanding that provide unique problem-solving ideas.

Incubation

Incubation is the process of maintaining controlled environmental conditions to facilitate the development of embryos or the growth of microorganisms.